MIRA INFORM REPORT
|
Report Date : |
20.10.2014 |
IDENTIFICATION DETAILS
|
Name : |
INDO RAMA SYNTHETICS (INDIA) LIMITED |
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Registered
Office : |
31-A, MIDC Industrial Area, Butibori, Nagpur – 441122, Maharashtra |
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Country : |
India |
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|
Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
28.04.1986 |
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Com. Reg. No.: |
11-166615 |
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Capital
Investment / Paid-up Capital : |
Rs.1518.200 Millions |
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|
|
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CIN No.: [Company Identification
No.] |
L17124MH1986PLC166615 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
BPLI00021A |
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PAN No.: [Permanent Account No.] |
AAALI1530L |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturer of Polyester Filament Yarn (PFY), Polyester
Staple Fibre (PSF), Draw Texturised Yarn (DTY) and Chips and also engaged in
power generation, which is used primarily for captive consumption |
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|
|
|
No. of Employees
: |
Information denied by the management |
RATING & COMMENTS
|
MIRA’s Rating : |
B (29) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Exist |
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Comments : |
Subject is a well-established and second largest polyester producer in
India having, moderate track. The company possesses a moderate financial profile marked by an
acceptable networth base along with highly accrued trade payables and limited
liquid investments outstanding as a result of moderation in the business
profile due to change in custom duty rates, high crude prices making it
difficult for the subject to compete with cotton and the oversupply in the
domestic market. Management has witnessed a dip in its sales-volume as well as has
reported a loss from its operations during FY14. The ratings also take into consideration, the various initiative
undertaken by the management, in order to bring the business operation on
track. Trade relations are fair. Business is active. Payment terms are
reported as slow but correct. In view of established track record of two decades and experienced
promoters, the subject can be considered for business dealings with
caution. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INDIAN ECONOMIC OVERVIEW
N E W S
Verdict Implications
: Apex court order may alter coal import dynamics. Traders go slow on talks
over coal supply contracts, uncertainty over cancellation of blocks weigh on
stocks.
Recent arrest of the
Chennai head of the Registrar of Companies, the ministry of corporate affairs
arm that ensures that companies file all the information required by the
Companies Act is the latest manifestation of a messy fight between a father and
his adopted son for the control of Rs 40000 mn business empire. The Central
Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10
lakhs as bribe from M A M Ramaswamy, a CBI official said.
Central Bureau of
Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.
Infosys maintains
revenue guidance. COO Rao says attrition still an area of concern and it would
take a few more quarters to bring down levels to 13-15 %.
DHL to invest
Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its
e-commerce business model for the Asia-Pacific region.
Blackstone may buy
stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.
Kingfisher Airlines
Ltd grounded in October 2012 under the weight of heavy debt and accumulated
losses, recently approached the Delhi high court for relief in two separate cases.
The airline challenged a notice by Punjab & National Bank alleging that It
had wilfully defaulted on Rs 7700 mn of loans and sought more time to comply
with the requirements under the listing agreements with the Stock Exchanges.
OnMobile likely to sack
another 300 employees. The lay-offs follow a spate of senior-level exits over
the past two years, starting with of its founder. The overall lay-offs could
number around 600 and are driven by the need to cut costs, says a former
employee.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Long term loans BB- |
|
Rating Explanation |
Moderate risk of default regarding timely
servicing and high credit risk. |
|
Date |
June, 2014 |
|
Rating Agency Name |
ICRA |
|
Rating |
Short term proposed limits A4 |
|
Rating Explanation |
Minimal degree of safety and very high
credit risk. |
|
Date |
June, 2014 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2014.
INFORMATION DENIED
MANAGEMENT NON CO-OPERATIVE (91-7104-663000)
LOCATIONS
|
Registered Office/ Factory : |
31-A, MIDC Industrial Area, Butibori, Nagpur – 441 122, Maharashtra, India |
|
Tel. No.: |
91-7104-663000-01 |
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Fax No.: |
91-7104-663200 |
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E-Mail : |
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Website : |
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Corporate
Office 1 : |
20th Floor, DLF Square, DLF Phase II, NH 8, Gurgaon - 122 003, Haryana, India |
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Tel. No.: |
91-124-4997000 |
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Fax No.: |
91-124-4997070 |
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E-Mail : |
ranvirk.vij@indorama-ind.com |
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Corporate Office 2 : |
Dr. Gopaldas Bhawan, 28, Barakhamba Road, New Delhi – 110001, India |
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Marketing
Offices 1 : |
G/504, ICB FLORA, SG Highway, Gota, Ahmedabad - 382481, Gujarat, India |
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Marketing
Offices 2 : |
Shop No. G1, G2, Nakoda Textile Tower, Trilok Marg -
Gandhinagar, |
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Tel. No.: |
91-1482-248576 |
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Fax No.: |
91-1482-248733 |
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Marketing
Offices 3 : |
Sarang, 1st Floor, 8/5, Race Course Road, Coimbatore - 641 018, Tamilnadu, India |
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Tel. No.: |
91-422-2220456 |
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Fax No.: |
91-422-2220658 |
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Marketing
Offices 4 : |
37/3, ‘G Tower’, Perundurai Road, Erode-638011, Tamilnadu, India |
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Tel. No.: |
91-424-2240847 |
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Marketing
Offices 5 : |
20th Floor, DLF Square, DLF Phase-II, NH-8, Gurgaon - 122 002, Haryana, India |
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Tel. No.: |
91-124-4997000 |
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Fax No.: |
91-124-4997070 |
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Marketing
Offices 6 : |
H.NO. 12-1-1314/A/5, Laxmi Nagar, North Lalaguda, Secunderabad - 500 017, Andhra Pradesh, India |
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Marketing
Offices 7 : |
7-C, Kiran Shankar Roy Road, Hastings Chambers, Ground Floor, Room No-GX, Kolkata - 700001, West Bengal, India |
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Marketing
Offices 8 : |
B-XIX-122/2, 4th Floor, Golden Plaza, The Mall Road, Ludhiana - 141 001, Punjab, India |
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Tel. No.: |
91-161-2442752 / 5045068 |
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Marketing
Offices 9 : |
No. 102 / G-1, Kameshwara Apartment, Sathya Sai Nagar Main Road, Madurai - 625003, Tamilnadu, India |
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Tel. No.: |
91-452-2694804 |
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Marketing
Offices 10 : |
The Metropolitan, 6th Floor, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051, Maharashtra, India |
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Tel. No.: |
91-22-26571234 |
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Fax No.: |
91-22-26571222 |
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Marketing
Offices 11 : |
L-572, Behind Ram Sharnam, Model Town, Panipat - 132 103, Haryana, India |
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Marketing
Offices 12 : |
A/9, 1st Floor, Gurukrupa Business Centre, Opposite Kotak Mahindra Bank, Vapi Main Road, Amli, Silvassa - 396230, UT of Dadra and Nagar Haveli, India |
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Tel. No.: |
91-260-2643416/17, 2644519 |
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Marketing
Offices 13 : |
202, Trividh Chambers, Opposite Fire Brigade Station, Ring Road, Surat - 395 002, Gujarat, India |
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Tel. No.: |
91-261-2339368 / 2350701 / 2350687 |
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Marketing
Offices 14 : |
4/5, Alagappa Complex, 1st Floor, Opposite Tamilnadu Theatres, Palladam Road, Tirupur - 641 604, Tamilnadu, India |
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Tel. No.: |
91-421-2217994 |
DIRECTORS
As on 31.03.2014
|
Name : |
Mr. Mohan Lal Lohia |
|
Designation : |
Chairman Emeritus |
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|
Name : |
Mr. Om Prakash Lohia |
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Designation : |
Chairman and Managing Director |
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Name : |
Mr. Vishal Lohia |
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Designation : |
Whole-time Director |
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Name : |
Mr. Anant Kishore |
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Designation : |
Whole-time Director and CEO |
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Name : |
Mr. Ashok Kumar Ladha |
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Designation : |
Non-executive Independent Director |
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Name : |
Mr. Om Prakash Vaish |
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Designation : |
Non-executive Independent Director |
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Name : |
Mr. Arvind Pandalai |
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Designation : |
Non-executive Independent Director |
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Name : |
Mr. Suman Jyoti Khaitan |
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Designation : |
Non-executive Independent Director |
KEY EXECUTIVES
|
Name : |
Mr. Jayant Sood |
|
Designation : |
Company Secretary |
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CORPORATE
EXECUTIVES |
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|
Name : |
Mr. Anant Kishore |
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Designation : |
Chief Operating Officer |
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|
Name : |
Mr. Sanjay Syal |
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Designation : |
President and Chief Financial Officer |
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|
Name : |
Mr. Ajay Gupta |
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Designation : |
Site Head |
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|
Name : |
Mr. Arvind Gupta |
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Designation : |
Marketing Head |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2014
|
Category of
Shareholder |
Total No. of
Shares |
% of Total No.
of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
||
|
|
|
|
|
|
52924848 |
37.39 |
|
|
4329204 |
3.06 |
|
|
57254052 |
40.45 |
|
|
|
|
|
|
961724 |
0.68 |
|
|
43288057 |
30.59 |
|
|
44249781 |
31.27 |
|
Total shareholding of Promoter and Promoter Group (A) |
101503833 |
71.72 |
|
(B) Public Shareholding |
||
|
|
|
|
|
|
10796 |
0.01 |
|
|
2252106 |
1.59 |
|
|
4006850 |
2.83 |
|
|
14134419 |
9.99 |
|
|
20404171 |
14.42 |
|
|
|
|
|
|
3949436 |
2.79 |
|
|
|
|
|
|
8035831 |
5.68 |
|
|
7637611 |
5.40 |
|
|
19622878 |
13.86 |
|
Total Public shareholding (B) |
40027049 |
28.28 |
|
Total (A)+(B) |
141530882 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
10291360 |
0.00 |
|
|
10291360 |
0.00 |
|
Total (A)+(B)+(C) |
151822242 |
0.00 |
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BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Polyester Filament Yarn (PFY), Polyester
Staple Fibre (PSF), Draw Texturised Yarn (DTY) and Chips and also engaged in power
generation, which is used primarily for captive consumption |
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Products : |
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GENERAL INFORMATION
|
No. of Employees : |
Not Divulged |
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Bankers : |
¨ Axis Bank Limited ¨ Bank of India ¨ HDFC Bank Limited ¨ Oriental Bank of Commerce ¨ Punjab National Bank ¨ State Bank of Travancore ¨ IKB Deutsche Industriebank AG |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
B S R and Associates Chartered Accountants |
|
Address : |
Gurgaon, Haryana, India |
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|
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Wholly owned subsidiaries
: |
¨ Indo Rama Renewables Limited (‘IRRL’) ¨ Indo Rama Renewables Porbandar Limited ¨ Indo Rama Renewables Ramgarh Limited ¨ Indo Rama Renewables Jath Limited |
|
|
|
|
Enterprises over which key management personnel
or their relatives have significant influence : |
¨ Indo Rama Petrochem Limited (IRPL), Thailand ¨ T P T Petrochemicals PCL (TPT Petro), Thailand ¨ P.T. Indo Rama Synthetics TBK, Jakarta |
|
|
|
|
Enterprises having significant influence
: |
¨ Brookgrange Investments Limited |
CAPITAL STRUCTURE
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
185000000 |
Equity Shares |
Rs.10/- each |
Rs.1850.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
151822242 |
Equity Shares |
Rs.10/- each |
Rs.1518.200 Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders'
Funds |
|
|
|
|
(a) Share Capital |
1518.200 |
1518.200 |
1518.200 |
|
(b) Reserves & Surplus |
4418.900 |
4566.300 |
4475.100 |
|
(c) Money
received against share warrants |
0.000 |
203.000 |
203.000 |
|
|
|
|
|
|
(2)
Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
5937.100 |
6287.500 |
6196.300 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
1728.400 |
1475.700 |
1957.600 |
|
(b) Deferred tax liabilities (Net) |
1860.300 |
2070.900 |
2133.700 |
|
(c) Other long term
liabilities |
8.300 |
8.400 |
7.800 |
|
(d) long-term
provisions |
181.400 |
149.300 |
147.500 |
|
Total Non-current
Liabilities (3) |
3778.400 |
3704.300 |
4246.600 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
2458.500 |
3427.200 |
2572.000 |
|
(b) Trade
payables |
5306.500 |
5360.300 |
5561.000 |
|
(c) Other
current liabilities |
1481.400 |
1341.200 |
2232.300 |
|
(d) Short-term
provisions |
204.300 |
278.500 |
236.800 |
|
Total Current
Liabilities (4) |
9450.700 |
10407.200 |
10602.100 |
|
|
|
|
|
|
TOTAL |
19166.200 |
20399.000 |
21045.000 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
10592.900 |
11720.800 |
12732.500 |
|
(ii)
Intangible Assets |
4.300 |
9.400 |
12.300 |
|
(iii) Capital
work-in-progress |
1.700 |
26.500 |
265.700 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
369.900 |
369.900 |
0.000 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
1198.200 |
805.100 |
532.200 |
|
(e) Other
Non-current assets |
76.100 |
196.100 |
100.400 |
|
Total Non-Current
Assets |
12243.100 |
13127.800 |
13643.100 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current
investments |
41.900 |
103.000 |
148.300 |
|
(b)
Inventories |
2936.100 |
3036.000 |
3636.000 |
|
(c) Trade
receivables |
1117.900 |
875.300 |
960.500 |
|
(d) Cash
and cash equivalents |
429.400 |
369.400 |
309.700 |
|
(e)
Short-term loans and advances |
807.800 |
1399.600 |
1021.400 |
|
(f) Other
current assets |
1590.000 |
1487.900 |
1326.000 |
|
Total
Current Assets |
6923.100 |
7271.200 |
7401.900 |
|
|
|
|
|
|
TOTAL |
19166.200 |
20399.000 |
21045.000 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
26291.200 |
29101.300 |
29688.000 |
|
|
|
Other Income |
2440.100 |
2407.800 |
2072.600 |
|
|
|
|
|
|
|
|
|
|
TOTAL |
28731.300 |
31509.100 |
31760.600 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
21250.700 |
24266.200 |
22789.800 |
|
|
|
Purchases of Stock-in-Trade |
0.000 |
4.600 |
0.000 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
905.700 |
84.600 |
1594.000 |
|
|
|
Employees benefits expense |
844.100 |
812.400 |
736.000 |
|
|
|
Other expenses |
3284.900 |
3516.800 |
3450.200 |
|
|
|
Exceptional items |
995.100 |
392.600 |
652.500 |
|
|
|
TOTAL |
27280.500 |
29077.200 |
29222.500 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION |
1450.800 |
2431.900 |
2538.100 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
352.300 |
445.100 |
612.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
1098.500 |
1986.800 |
1925.900 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
1351.200 |
1579.900 |
1543.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX |
(252.700) |
406.900 |
382.300 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
(170.900) |
(5.700) |
62.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX |
(81.800) |
412.600 |
319.600 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
2081.900 |
1846.900 |
1703.700 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Interim dividend
|
151.800 |
151.800 |
151.800 |
|
|
|
Proposed
dividend |
25.800 |
25.800 |
24.600 |
|
|
BALANCE CARRIED
TO THE B/S |
1822.500 |
2081.900 |
1846.900 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
F.O.B. Value of Exports |
6856.200 |
7498.600 |
8449.500 |
|
|
|
Dividend |
28.800 |
104.600 |
211.400 |
|
|
|
Sale of current investments (Gross consideration) |
2418.600 |
2080.700 |
1755.800 |
|
|
TOTAL EARNINGS |
9303.600 |
9683.900 |
10416.700 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
16258.400 |
14991.600 |
14948.700 |
|
|
|
Packing Material |
0.000 |
1.500 |
10.000 |
|
|
|
Stores & Spares |
90.600 |
61.500 |
16.600 |
|
|
|
Capital Goods |
5.200 |
36.600 |
444.400 |
|
|
TOTAL IMPORTS |
16354.200 |
15091.200 |
15419.700 |
|
|
|
|
|
|
|
|
|
|
Earnings / (Loss)
Per Share (Rs.) |
(0.54) |
2.72 |
2.11 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
(0.28) |
1.31 |
1.01 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(0.96) |
1.40 |
1.29 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(1.34) |
2.03 |
1.84 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.04) |
0.06 |
0.06 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.71 |
0.78 |
0.73 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.73 |
0.70 |
0.70 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
1518.200 |
1518.200 |
1518.200 |
|
Reserves & Surplus |
4475.100 |
4566.300 |
4418.900 |
|
Money received against share warrants |
203.000 |
203.000 |
0.000 |
|
Net
worth |
6196.300 |
6287.500 |
5937.100 |
|
|
|
|
|
|
long-term borrowings |
1957.600 |
1475.700 |
1728.400 |
|
Short term borrowings |
2572.000 |
3427.200 |
2458.500 |
|
Total
borrowings |
4529.600 |
4902.900 |
4186.900 |
|
Debt/Equity
ratio |
0.731 |
0.780 |
0.705 |
%20LIMITED%20-%20290943%20_MIRA%2020-Oct-2014_files/image022.gif)
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
29688.000 |
29101.300 |
26291.200 |
|
|
|
(1.976) |
(9.656) |
%20LIMITED%20-%20290943%20_MIRA%2020-Oct-2014_files/image024.gif)
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
29688.000 |
29101.300 |
26291.200 |
|
Profit |
319.600 |
412.600 |
(81.800) |
|
|
1.08% |
1.42% |
(0.31%) |
%20LIMITED%20-%20290943%20_MIRA%2020-Oct-2014_files/image026.gif)
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
Yes |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
----- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm
/ promoter involved in |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of Proprietor/Partner/Director,
if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
LITIGATION DETAILS
|
HIGH COURT OF
BOMBAY |
|
CASE DETAILS BENCH: BOMBAY |
|
Lodging No.:- CCL/306/2011 Filing
Date:- 08/02/2011 Reg. No.:- CC/14/2011 Reg.
Date:- 20.04.2011 |
|
Petitioner: RELIANCE
INFRASTRUCTURE LIMITED
Respondent: INDO RAMA SYNTHETICS (INDIA) LIMITED Petn. Adv : MULLA
AND MULLA AND C.B. AND C (0) District: NAGPUR |
|
Bench: SINGLE Status: Pre-Admission
Category: COUNTER CLAIM |
|
Act:- Code
of Civil Procedure 1908 |
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10468964 |
03/01/2014 |
250,000,000.00 |
State Bank of Travancore |
Commercial Branch, Travancore Palace, K.G Marg, New Delhi, Delhi -
110001, INDIA |
B93028843 |
|
2 |
10461775 |
29/11/2013 * |
150,000,000.00 |
SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA |
NATIONAL INSURANCE BUILDING, GROUND FLOOR, S.V. PATEL MARG, KINGSWAY,
NAGPUR, Maharashtra - 440001, INDIA |
B90697632 |
|
3 |
10341105 |
20/01/2012 |
240,000,000.00 |
ORIENTAL BANK OF COMMERCE |
E-Block, Harsha Bhawan, Connaught Place, New Delhi, Delhi - 110001,
INDIA |
B34538363 |
|
4 |
10062641 |
30/07/2012 * |
850,000,000.00 |
STATE BANK OF TRAVANCORE |
Commercial Branch, Travancore House, K.G. Marg, New Delhi, Delhi -
110001, INDIA |
B56359409 |
|
5 |
90210703 |
19/12/2006 * |
952,496,718.75 |
IKB DEUTSCHE INDUSTRIEBANK AG |
Wilhelm-Botzkes-Str.1, 40474 Dusseldorf., Federal |
- |
|
6 |
80016714 |
19/12/2006 * |
1,742,755,000.00 |
IKB DEUTSCHE INDUSTRIEBANK AG |
Wilhelm-Botzkes-Str.1, 40474 Dusseldorf., Federal |
- |
|
7 |
80016712 |
19/12/2006 * |
222,343,000.00 |
IKB DEUTSCHE INDUSTRIEBANK AG |
Wilhelm-Botzkes-Str.1, 40474 Dusseldorf., Federal |
- |
|
8 |
90209638 |
30/07/2012 * |
750,000,000.00 |
PUNJAB NATIONAL BANK |
15-17, Large Corporate Branch, Tolstoy House, |
B56385412 |
|
9 |
80016709 |
30/07/2012 * |
1,900,000,000.00 |
Oriental Bank of Commerce |
85-A, Rishyamook Building, Panchkuian Road, New |
B56643711 |
|
10 |
90209563 |
20/03/2014 * |
2,208,200,000.00 |
Bank of India |
New Delhi Large Corporate Branch, 10th Floor, Chanderlok Building,
36,Janpath, New Delhi, Delhi - 110001, INDIA |
C05650304 |
|
11 |
90204064 |
30/07/2012 * |
670,000,000.00 |
AXIS BANK LTD. |
2ND FLOOR, STATESMAN HOUSE, 148, BARAKHAMBA ROAD, |
B55797575 |
|
12 |
80016711 |
21/11/2013 * |
750,000,000.00 |
HDFC BANK LIMITED |
HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, Maharashtra
- 400013, INDIA |
B91406934 |
|
13 |
90202627 |
08/11/1990 |
12,700,000.00 |
INDUSTRIAL FINANCE CORPORATION OF INDIA |
BANK OF BARODA BUILDING, 16; SANSAD MARG, NEW DELHI, Delhi - 110001,
INDIA |
- |
|
14 |
90202604 |
10/05/1990 |
12,600,000.00 |
INDUSTRIAL FINANCE CORPORATION OF INDIA |
BANK OF BARODA BUILDING, 16; SANSAD MARG, NEW DELHI, Delhi - 110001,
INDIA |
- |
|
15 |
90202540 |
12/09/1989 * |
2,500,000.00 |
INDUSTRIAL FINANCE CORPORATION OF INDIA |
BANK OF BARODA BUILDING, 16; SANSAD MARG, NEW DELHI, Delhi - 110001,
INDIA |
- |
* Date of charge modification
GENERAL INFORMATION
Indo Rama Synthetics (India) Limited (hereinafter referred to as ‘the Company’ or ‘IRSL’) is a manufacturer of Polyester Filament Yarn (PFY), Polyester Staple Fibre (PSF), Draw Texturised Yarn (DTY) and Chips. The Company is also engaged in power generation, which is used primarily for captive consumption. The Company’s manufacturing facilities are located at Butibori, Nagpur.
OPERATIONAL AND FINANCIAL REVIEW
During the year under report, the Company recorded gross revenue of Rs. 28610.000 Million as against Rs. 31664.000 Million in previous year. EBIDTA is Rs. 2446.000 Million as against Rs.2825.000 Million last year. Loss after Tax stood at Rs. 81.800 Million as against Profit of Rs.412.600 Million for the previous year.
The year 2013-14, was one of the most challenging years in the recent past. The Indian economy passed through a difficult phase with business activities on a lower side for most of the sectors due to depreciation in the value of rupee, rising crude oil prices and increasing raw material costs. Adding to the weak demand, production was also hampered due to the lack of adequate raw material.
The Company focused on widening product basket, optimising raw material usage, rationalising costs, accelerating global forays and enhancing people capabilities. These initiatives will help sustain the difficult times and grow their core strengths.
The demand for man-made fibres is showing signs of improvement and we are hopeful that the demand for polyester will see revival. Polyester demand will be driven by its growing relevance in daily life across home textiles, apparel, automotive, furnishing fabrics, technical textile and non-woven segments.
Going ahead, with demand going up both in the Domestic and International Market, they are hopeful that they will be able to utilise higher production capacity and grow business volumes.
MANAGEMENT DISCUSSION AND ANALYSIS
Global Economy
The global
economic environment has broadly strengthened, with modestly better consumer
and investment sentiments and less inherent fragilities. It is likely to
improve further, with much of the growth impetus emanating from advanced
economies. However, one disturbing trend is that global growth pattern still
remains uneven with a stronger US economy, subdued growth in the Euro Area and
Japan and slowdown in the Emerging Markets and Developing Economies (EMDC).
China’s leadership has now adopted a more balanced growth paradigm with
enhanced focus on the services sector. Such an approach may augur well for the
Chinese economy in the foreseeable future. If they take a macro perspective,
full global recovery remains a distant prospect. However, the journey has
already begun in right earnest.
Indian Economy
India’s economy faced multiple roadblocks to
growth in the form of persistently high inflation, sluggish industrial
production, discouraging agricultural output, modest investment in
infrastructure and stalled projects owing to bureaucratic hassles and no
definite agenda towards reforms. However, the new Central Government is
expected to accelerate the pace of reforms and help enhance investor confidence.
It is estimated that the country’s GDP will grow by 5.4% in 2014-15, compared
to 4.7% in 2013-14 (Source: IMF).
Rapid
implementation of Goods and Services Tax (GST) and further reduction in fiscal deficit
are expected to be some of the key thrust areas for the new government. Such an
approach is expected to pave the way for the country to achieve 7-7.5% growth.
The depreciation
of the Indian rupee last year gave a fillip to India’s export industry.
Moreover, the foreign trade policy (FTP) for 2014-19 is likely to be rolled out
soon to promote exports and narrow down trade deficit.
FIBRE INDUSTRY
SCENARIO
Global Fibre
Industry
Global fibre
production rose by an estimated 1.6% in 2013 from 84 million tonnes to 85.4
million tonnes. The growth is largely due to the higher production volumes of
textiles fibres in China. The marginal growth in volumes is attributed to weak
global economy and weak demand. The MMF production reached a new level of 58.5 million
tonnes, up from 56.0 million tonnes, a 4.3% escalation. The polyester fibre
accounted for an estimated 44 million tonnes registering an increase of 5.5% in
volumes. The polyester fibre accounts for 51.5% of total fibre volumes and 75%
of MMF fibres. The cellulosic fibre production went up by 9.6% for the year
under consideration at an estimated 5.8 million tonnes. The Polyamide or Nylon
increased by an estimated 3.9% and Polypropylene marginally increased by 1%.
China accounted for the highest growth at 10.8% in MMF production to 38.5
million tonnes in 2013 from 35.5 million tonnes in 2012.
Cotton fibre
global production is estimated to decline by 5.2% to a level of 25.4 million
tonnes in 2013-14 compared to 26.8 million tonnes in 2012-13. Cotton inventory
rose by 8.2% at estimated 21.1 million tonnes. The end use stock ratio stands
at 88.5%. (USDA, April 2014)
Synthetic fibres
accounted for 62%, cotton 30%, manmade cellulosic fibres 6.8% and wool 1.3% of
85.4 million tonnes of fibres produced in 2013, as per the estimates of CIRFS
and The Fibre Year.
Indian Fibre
Industry
India’s fibre
demand is estimated at 8.4 million tonnes in 2013, compared with 8.0 million
tonnes in 2012, a 5% escalation. Cotton demand went up by 3.2% from 4.64
million tonnes in 2012 to 4.79 million tonnes in 2013, polyester fibre
estimated demand went up by 7.5% at 3.2 million tonnes. Viscose fibre rose by
estimated9% from 0.30 million tonnes to 0.33 million tonnes. Acrylic fibre
continued to make recovery, up by 17% from 0.096 million tonnes in 2012 to 0.11
million tonnes in 2013. The polyester fibre accounted for 37% and cotton
accounted for 57% of India’s total fibre demand. Together cotton and polyester
fibre accounts for 94% of the demand.
CONTINGENT
LIABILITIES NOT PROVIDED FOR:
|
Particulars
|
31.03.2014 (Rs.
In Millions) |
31.03.2013 (Rs.
In Millions) |
|
Excise / customs / service tax matters in
dispute/ under appeal |
631.900 |
3036.100 |
|
Income tax matters in dispute/ under
appeal |
155.200 |
175.300 |
|
Sales tax matters in dispute/ under appeal |
64.600 |
60.700 |
|
Claims by ex-employees, vendors, customers
and civil cases |
7.100 |
6.100 |
FIXED ASSETS
œ Land (Freehold and
Leasehold)
œ Roads and
Buildings
œ Plant and
Machinery
œ Furniture and
Office Equipment’s
œ Vehicles
œ Software
UNAUDITED
RESULTS FOR THE QUARTER AND ENDED ON 30TH JUNE, 2014
(Rs. In Millions)
|
|
|
Particulars |
Quarter
ended 30.06.2014 |
|
1 |
Income from Operations |
|
|
|
|
a) Net Sales/Income from Operations (net of excise duty) |
7052.700 |
|
|
|
b) Other Operating Income |
100.300 |
|
|
|
Total Income from Operations (Net) |
7153.000 |
|
|
2 |
Expenses |
|
|
|
|
a) |
Cost of Materials consumed |
5610.500 |
|
|
b) |
Changes in inventories of finished goods, work-in-progress and
stock-in-trade |
15.300 |
|
|
c) |
Employee benefit expenses |
228.800 |
|
|
d) |
Other
expenses |
893.400 |
|
|
Total Expenses |
6748.000 |
|
|
3 |
|
Profit
/(Loss) from operations before depreciation and amortization, other income,
finance costs and exceptional items and tax |
405.000 |
|
4 |
Depreciation
and Amortization Expenses |
310.100 |
|
|
5 |
|
Profit
/(Loss) from operations before other income, finance costs and exceptional
items |
7058.100 |
|
6 |
Other
Income |
59.900 |
|
|
7 |
|
Profit
/(Loss) from ordinary activities before finance costs and exceptional items |
154.800 |
|
8 |
Finance
Costs |
100.700 |
|
|
9 |
|
Profit
/(Loss) from ordinary activities after finance costs but before exceptional
items |
54.100 |
|
10 |
Exceptional
Items |
116.100 |
|
|
11 |
Profit /(Loss) from ordinary activities
before tax |
170.200 |
|
|
12 |
Tax Expense |
(50.300) |
|
|
13 |
Net Profit /(Loss) for the period |
220.500 |
|
|
14 |
Paid up
equity share capital (Eq. shares of
Rs.10/- each) |
1518.200 |
|
|
15 |
Reserve
excluding revaluation reserves |
|
|
|
|
|
Earnings per
share (before/after extraordinary items) of
Rs.10/- each |
|
|
|
|
Basic and Diluted |
1.45 |
|
|
|
|
|
|
A |
|
PARTICULARS
OF SHAREHOLDING |
|
|
1 |
|
Public Shareholding |
|
|
|
|
- No. of
Shares |
50318409 |
|
|
|
- Percentage
of Shareholding |
33.14% |
|
2 |
|
Promoters and promoter group shareholding |
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
- Number
of shares |
-- |
|
|
|
-
Percentage of shares ( as a % of the total shareholding of the promoter and promoter
group) |
-- |
|
|
|
-
Percentage of shares (as a % of the total share capital of the Company) |
-- |
|
|
|
b) Non- encumbered |
|
|
|
|
- Number
of shares |
101503833 |
|
|
|
- Percentage
of shares ( as a % of the total shareholding of the promoter and promoter
group) |
100.00% |
|
|
|
-
Percentage of shares (as a % of the total share capital of the Company) |
66.86% |
|
|
Particulars |
Quarter
ended 30.06.2014 |
|
|
B |
|
Investor
Complaints |
|
|
|
|
Pending at
the beginning of the quarter |
-- |
|
|
|
Received
during the quarter |
7 |
|
|
|
Disposed
during the quarter |
7 |
|
|
|
Remaining
unresolved at the end of the quarter |
-- |
NOTE:
- The Audit Committee reviewed the above results. The Board of
Directors, at their meetings held on 7 August 2014, have approved the
above results.
- The Statutory Auditors of the Company have carried out a Limited
Review of the financial results for the quarter ended 30 June 2014 and an
unqualified opinion has been issued. The review report of statutory
auditors is being filed with Bombay and National Stock Exchanges.
- The Company has made an early application, since the year 2010-11,
of Accounting Standard 30 "Financial Instruments- Recognition and
Measurement", issued by the Institute of Chartered Accountants of
India for accounting of forward exchange contracts taken for highly
probable/forecast transactions, which are not covered by Accounting Standard-1
1. An amount of Rs. 4.45 crores has been recognized as income in the
financial results for the quarter ended 30 June 2014 and included in
exceptional items as an adjustment on the said application of Accounting
Standard 30.
- Due to significant volatility in the foreign currency vis-6-vis
local currency, the Company has considered the foreign exchange
fluctuation as an exceptional item.
- The Company's business mainly comprises manufacture of polyester. During the past few years, there has been significant volatility in raw material prices of polyester which are linked with crude oil prices and is subject to foreign exchange fluctuations. The sales realization in the industry has been low in comparison to the raw material price variations. In addition, stiff competition in certain products, low capacity utilisation, high inflation, high interest rates and weakened rupee has resulted in a temporary phase of low operating margins losses in the recent pM and also accumulation of significant unabsorbed depreciation as per tax laws. However, the Company's products command a premium in the market due to cost competitiveness and quality standards and its premium product lines are operating at full capacity. The Company has internally assessed its. position and the future outlook and has also initiated various measures including strategic steps to ensure profitable operations. To achieve the projected level of profitability, the Company is in the process of finalizing plans to increase the capacity for its preminm products by making fwther investment in the product line and is also confident of the market demand for the increased production. These actions would be coupled with other initiatives which include cost saving measures, exploration of new markets especially exports, streamlined utilisation of export benefits, developing backward integration facilities towards producing certain key input materials. The Company is also arranging for funds to meet the above plans. Accordingly, the Company believes that considering the expected investment and resultant profitability over the next year and in futwe years, no provision is required for impairment of assets and is confident that the MAT credit entitlement carried at the end of the year is fully recoverable.
- During the quarter ended 30 June 2014, based on internal technical evaluation, management reassessed the remaining useful life of assets, primarily consisting of buildings and plant and machinery with effect from 1 April 2014. Accordingly, the useful life of assets does not require a change from the previous estimates.
- The Company's business activity falls within a single primary business segment viz. 'Polyester'
PRESS RELEASE
Indo
Rama Synthetics (India) Ltd. Q1 EBIDTA at Rs 581.000 Millions Net Sales at Rs 7052.700
Millions
August
07, 2014
New Delhi: Subject, India’s largest dedicated polyester manufacturer, today announced its audited results for the Quarter and financial Year ended June 30, 2014.
For the quarter ended June 30, 2014, net sales stood at Rs 7052.700 millions as against Rs 7062.600 millions of Q1 of previous year. The EBIDTA for the period stood at Rs 581.000 millions. Net profit for the period stood at Rs 220.500 millions.
Indo Rama has demonstrated its resilience in the challenging economic times last year in the adverse conditions and we continue to be steady despite all odds. In order to grow further from here, we have taken some cost improvement initiatives, which will further add to our competitiveness. With the Polyester prices bottoming out and rupee stabilizing, we expect the sentiments and performance to improve from here.
We have been successfully able to make optimum utilization of available resources so as to keep up our operational efficiencies. We hope to see improvement in the overall economic environment that should help us perform better in the coming quarters. With the demand looking up in the coming year, we project that the following quarters will be better than the last.
Commenting on the company’s performance, Mr. O. P. Lohia, Chairman and Managing Director, Subject
The overall market outlook for polyester remained turbulent and uncertain in the last few quarters. High raw material cost has impacted the overall business proposition in a big manner. We remained watchful, agile and prudent and have launched several operational excellence initiatives to further enhance our operational performance in the last quarter. I am confident that with our clear strategic focus, our superior execution and our top notch team, we will be delivering better margins in the future.
The recent government announcement of levying Provisional Anti-Dumping Duty on imports of PTA will have a huge impact on the margins of the Polyester Industry, which is already reeling under thin margins and will keep on suffering as competition will become more severe. The downstream industry will have to become more alert as there is no anti-dumping duty on fabrics which would become expensive and the garment would also become dearer.
About Subject
Subject. is India’s largest dedicated polyester manufacturer with an Integrated Manufacturing Complex in Butibori near Nagpur in Maharashtra, with production capacity of 6,10,050 tonnes per annum of Polyester Staple Fibre, Filament Yarn, Draw Texturized Yarn, Fully Drawn Yarn and Textile grade Chips.
INDO RAMA SYNTHETICS REPORTS Q1 NET PROFIT OF RS 220.500 MILLIONS
August 8, 2014
NEW DELHI: Polyster
manufacturer subject has reported a net profit of Rs
220.500 millions for the first quarter of current fiscal, against a net loss of
Rs 30.03 crore in the year-ago period.
The company's net sales during the quarter ended June 30 stood at Rs
7052.700 millions as against Rs 7062.600 millions in the first quarter of the
previous fiscal 2012-13, it said in a press release.
Indo Rama Synthetics, India's largest dedicated polyester manufacturer, also said it has taken some cost
improvement initiatives, which will further add to its competitiveness.
"With the polyester prices bottoming
out and rupee stabilising, we expect the sentiments
and performance to improve from here," the company said.
Commenting on its financial performance, the company's Chairman and
Managing Director O P Lohia said,
"The overall market outlook for
polyester remained turbulent and uncertain in the last few quarters. High raw
material cost has impacted the overall business proposition in a big manner
.
"We remained watchful, agile and prudent and have launched several
operational excellence initiatives to further enhance our operational
performance in the last quarter. I am confident that with our clear strategic
focus, superior execution and top notch team, we will be delivering better
margins in the future."
Lohia added that the "recent government announcement of levying
Provisional Anti Dumping Duty on imports of PTA (purified terephthalic acid
which is used in making poylster) will have a huge impact on the margins of the
polyester industry, which is already reeling under thin margins and will keep
on suffering as competition will become more severe.
"The downstream industry will have to become more alert as there is
no anti dumping duty on fabrics which would become expensive and the garment
would also become dearer."
The company has an integrated manufacturing complex in Butibori near
Nagpur in Maharashtra, with production capacity of 6,10,050 tonnes per annum of
various products.
Indo Rama said it expects to see improvement in the overall economic
environment to help it perform better in the coming quarters.
"With demand looking up in the coming year, we project that the
following quarters will be better than the last," it said.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON DESIGNATED
PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or investigation
registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.62 |
|
|
1 |
Rs.99.12 |
|
Euro |
1 |
Rs.78.89 |
INFORMATION DETAILS
|
Information
Gathered by : |
PRT |
|
|
|
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
ANK |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
29 |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.